Why Life Insurance Should Be Part Of Your Wealth Strategy
I bet you’re cautiously reading this waiting for the guilt trip telling you to buy life insurance for your poor loved ones who would suffer if you died. Well, I hate to disappoint you, but that’s not what I am writing about. I believe that life insurance is one of the best places to store money as you save up for investments. I also believe it is a great source of leverage, and over the long term, one of the best strategies to avoid estate taxes when you pass your wealth on to your heirs. I don’t recommend life insurance because of “what if you die???”. I recommend life insurance so that you can grow your money to invest in real estate deals, while bypassing Wall Street, Central Banks, and the IRS so that you can keep more of your wealth.
This is pretty cut and dry, but to build wealth you need to invest. To invest you need to save. I believe if you save in life insurance you are better off than if you saved in a bank. That’s the bottom line. Will you have a death benefit? Yes. Is that why you’re buying life insurance? No. You’re buying it because of how powerful of a savings vehicle it really is.
When you place $100,000 in a bank, you get nothing but access to what you put in there. You might make $100 in interest if you leave it in for the whole year, but if you’re an investor you’re going to put it into a deal, which means they won’t pay you the interest because the money isn’t there. This means that the bank literally serves no purpose. It is simply somewhere to temporarily hold the money and it offers no other benefit.
Place the same $100,000 into life insurance and you’ll have access to up to 93% of it immediately. The other 7% bought death benefit shares that produce a 6-8% dividend for you. So you can use the money just like you would in the bank, but the insurance will pay you 6-8% instead of .10%? That already sounds like a better deal right? But again, if you’re an investor you’re going to put the money into a deal, not just leave it in the account, but unlike the bank, your life insurance will still pay you 6-8% even though you’ve taken the money out to go do a deal. They will keep paying you interest on money that technically isn’t there. Imagine going to a bank, depositing money, and then withdrawing it. And then looking at your statement and realizing they kept paying you interest on the funds even though you withdrew them. That’s what the life insurance is doing for you.
You see, you need somewhere to keep money and this is why I believe life insurance is better.
When you withdraw your money, you will have to pay interest. That’s true. You see, instead of withdrawing the funds, which could be a taxable event, you will instead borrow against the funds which is a non-taxable event. Not only that, because you’re a policy holder you’re also looked at as a shareholder in the insurance company. This means that the interest you’re paying goes back to a company you own and can make them more profitable which can increase your dividends. Would you rather pay taxes on a withdrawal to the IRS or pay interest on a loan to a company you profit from?
The last thing is the death benefit. As I stated, you have one but you’re not “buying life insurance”. You’re buying a savings vehicle that happens to have a death benefit. The death benefit will be paid for by the policy itself, costing you nothing out of pocket, it will grow, and it is tax free. Someone in your life will get that money at some point. So for now, forget you have a death benefit and go use the account to get wealthy and when you die, someone will have a nice tax-free inheritance from your life insurance.
The question isn’t “why life insurance?” The real question is, “why do you save your money in the bank?”
I help my clients make more income so that they can save 40% of their income into life insurance policies like this. We then use the life insurance to invest in real estate and produce passive income, produced by real assets. It’s a very simple plan and it’s a lot better of a plan than working hard for your money, and then giving it to the IRS, Wall Street, and Central Banks so that they can keep getting richer at your expense. If this makes sense to you, click here and I can provide you with more information on how to follow my plan instead.
Own Your Potential,
Jerry Fetta
Grant Cardone Certified Coach
Jerry Fetta helps his clients build wealth so that they can eradicate poverty in their own lives and own their potential.
He believes scarcity and abundance cannot co-exist and that the way to end poverty is to help you build wealth.
You were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf. The only way to do this is to make more money, keep it, and then multiply it.
He has helped clients double their income, save $100,000 tax-free, and secure 8-12% fixed annual returns on their assets.
To get started, go to www.WealthDynamX.com/contact
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